The American carmaker’s CEO pictured during a public appearance, speaking on the company’s strategy and market direction. | Source: Fortune
Ford is set to record $19.5 billion in special charges, a financial hit tied to a major rethink of its electric-vehicle strategy and broader business priorities. Most of the cost will be recognised in the fourth quarter, with additional cash expenses spread through 2027. Before going into the full breakdown of the losses, understanding why Ford is altering its course and what the future holds puts the long-term picture in view beyond the mammoth sum.
In simple terms, Ford is basically pulling back from an earlier push toward an all-electric future and shifting attention to hybrids, extended-range EVs, and the vehicles that already make it money, like trucks, SUVs, and commercial vans. The company says the charges will weigh on reported net income but will not affect adjusted earnings. At the same time, Ford raised its 2025 adjusted EBIT guidance to about $7 billion, up from the $6–$6.5 billion range it projected in October.
What About Ford’s Recent Strategy Shift Is Driving Such Heavy Write-Offs?
A big chunk of the loss, around $8.5 billion, comes from writing down EV assets. That includes projects Ford has cancelled or scaled back, such as plans for a new generation of large, all-electric trucks. Instead of chasing those models, Ford says it will focus on smaller, cheaper EVs and put more weight behind hybrids and plug-in hybrids, which are selling better right now.
CEO Jim Farley said the company simply followed the market. Highlighting that buyers have been hesitant to spend $50,000 to $80,000 on high-end EVs, and sales have slowed across the segment. Policy changes also mattered. The early end of the $7,500 federal EV tax credit in the U.S. reduced incentives for buyers, making expensive electric models even harder to move.
As part of the reset, Ford confirmed that the all-electric F-150 Lightning will shift to an extended-range EV setup. That means it will still run on electricity but include a small gas engine to generate power when needed. Ford is also working to turn some of its battery factories in Kentucky and Michigan toward a new energy-storage business, supplying batteries for data centres and the power grid, with implementation expected to start in 2027.
How Soon Can Ford Return to Profitability After Its $19.5 Billion EV Reset?
Ford says these changes should help its EV division move toward profitability by 2029, with steady improvements starting in 2026. The company also expects its traditional car business and commercial unit to benefit over time as spending becomes more focused.
Looking ahead, Ford expects about half of its global sales by 2030 to come from hybrids, extended-range EVs, and fully electric vehicles, up from 17% in 2025. New EV development will centre on a low-cost platform, with the first model—a midsize electric pickup—set to begin production in 2027.Beyond the U.S., Ford is already laying groundwork for this transition globally. The company now builds the Ranger Plug-in Hybrid at its upgraded Silverton plant in South Africa, positioning the facility as a key hub for hybrid production, exports, and more sustainable manufacturing. At the same time, Ford announced a change to its EV strategy in Europe through a new partnership with Renault, under which Ford will introduce two affordable electric models based on Renault Group’s Ampere platform starting in early 2028.
